The shared resistance of $3580 and 200 DMA triggered a minor retracement in ETH/USDT pair. On April 6th, the sellers gave a strong breakdown from the $3300 support, suggesting further price correction to $3000. A bullish crossover between 50 and 100 DMA at $3000 support may provide dip opportunities to long traders.
Key points:
- The ETH price forms a bearish engulfing candle in the weekly time frame chart
- The 50 and 100 DMA are heading towards a bullish crossover
- The intraday trading volume in Ether is $1.64 Billion, indicating a 34% loss
Source- Tradingview
During the recent recovery rally, the ETH price outperformed Bitcoin through a 47% gain in the last three weeks. The bullish rally hit the $3457 resistance zone, its highest level since early January.
However, the sellers took advantage of the current volatility in the market and slumped the altcoin below the $3300 support. As a result, the ETH price tumbled by 10% since last week and is poised to provide a weekly closing below the breached support.
The weekend is spent to retest the $3300 flipped resistance and confirm a genuine breakdown. The 20 DMA would assist sellers in maintaining trend control and dumping the altcoin by another 8.5% to $3000 physiological support.
The interested buyers need to watch this level closely as a bullish crossover among the 50 and 100 DMA at the support zone($3000) may bolster an upside reversal.
- Resistance level: $3350 and $3600
- Support levels: $3000 and $2738
Technical Indicator
Vortex indicator– a bearish crossover between the VI+ and VI- slopes would provide additional confirmation for downfall.
The average directional index: Moreover, the declining ADX(22) slope hints that buyers are losing their grip on ETH price.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Source: https://coingape.com/markets/ethereum-price-prediction-can-dma-crossover-prevent-eth-from-further-losses/